#MarketTiming – today’s “gasp” in the slow rollover…

Yesterday in this link below it was suggested that there might soon be a collective market gasp as the fierce bear-market rally might becoming to an end, possibly as soon as today:

$SPY – the slow roll over?

The rollover didn’t show up all that much today in the indexes but if the leverage ETFs across the most prominent sectors are any indication (see the illustration below), this could be the start of something big for the bears.

Besides the solid gains in these leveraged ETFs (see percentage change column on the chart below), 42 of the stocks in my nifty-50 stock list were in the red. That was mass selling, a veritable blood bath on the day. SPY puts in or at or near the money on the open, expiring today, were up a minimum of 93% from today’s open (the 279 put was up 243%, showing there is nothing “slow” about a rollover on an expiration day).

In addition, CNN’s Fear And Greed Index appears to have topped again at an extreme greed level and turned down (see the SPY chart below). And the VIX has edged up above 15 again, a key level in the ebb and flow between bull and in this case more importantly bear markets.

Again, as it was coming into today, the market looks primed for more down side. As long as the breadth indicators (NYMO/NYSI) are negative, shorts are in play.

(click on charts below for a larger view)

(click on the chart for a larger view of SPY in relation to CNN’s Fear And Greed)

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